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Initial D Arcade Stage Ver. 3 is an arcade car racing sequel to Initial D: Arcade Stage Ver. 2. A special version of this game was released for the Cycraft motion arcade cabinet titled Initial D: Version 3 Cycraft. The game is based on the anime and manga series Initial D. In the United States, the game series is simply known as Initial D.

Several new courses in version 3 include: Akina Snow (only night), Shomaru, and Tsuchisaka. Also, new opponents in the version 3 game include Tohru Suetsugu, Atsuro Kawai, Miki, and the Tsucisaka Lan Evo team. Version 3 new cars include the Mitsubishi Lancer Evolution V, Lancer Evolution VI T.M. Edition, Mazda RX-8, and the Nissan Skyline 25GT-T. The game features original Eurobeat songs from artists including Matt Land, Powerful T., Ace Warrior, and Marco Polo.